Correlation Between ULTRA CLEAN and LAir Liquide
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN and LAir Liquide at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ULTRA CLEAN and LAir Liquide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULTRA CLEAN HLDGS and LAir Liquide SA, you can compare the effects of market volatilities on ULTRA CLEAN and LAir Liquide and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ULTRA CLEAN with a short position of LAir Liquide. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and LAir Liquide.
Diversification Opportunities for ULTRA CLEAN and LAir Liquide
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ULTRA and LAir is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS and LAir Liquide SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAir Liquide SA and ULTRA CLEAN is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ULTRA CLEAN HLDGS are associated (or correlated) with LAir Liquide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAir Liquide SA has no effect on the direction of ULTRA CLEAN i.e., ULTRA CLEAN and LAir Liquide go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and LAir Liquide
Assuming the 90 days trading horizon ULTRA CLEAN HLDGS is expected to generate 3.35 times more return on investment than LAir Liquide. However, ULTRA CLEAN is 3.35 times more volatile than LAir Liquide SA. It trades about 0.08 of its potential returns per unit of risk. LAir Liquide SA is currently generating about 0.01 per unit of risk. If you would invest 2,120 in ULTRA CLEAN HLDGS on July 20, 2025 and sell it today you would earn a total of 340.00 from holding ULTRA CLEAN HLDGS or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ULTRA CLEAN HLDGS vs. LAir Liquide SA
Performance |
| Timeline |
| ULTRA CLEAN HLDGS |
| LAir Liquide SA |
ULTRA CLEAN and LAir Liquide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ULTRA CLEAN and LAir Liquide
The main advantage of trading using opposite ULTRA CLEAN and LAir Liquide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN position performs unexpectedly, LAir Liquide can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LAir Liquide will offset losses from the drop in LAir Liquide's long position.| ULTRA CLEAN vs. COSTCO WHOLESALE CDR | ULTRA CLEAN vs. Sun Art Retail | ULTRA CLEAN vs. SCANDMEDICAL SOLDK 040 | ULTRA CLEAN vs. ONWARD MEDICAL BV |
| LAir Liquide vs. GRIFFIN MINING LTD | LAir Liquide vs. Yanzhou Coal Mining | LAir Liquide vs. Zoom Video Communications | LAir Liquide vs. COMTECH TELECOMM |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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